Client Alerts

On July 12, 2011, the Securities and Exchange Commission (the "SEC"), issued Release No. IA-3236 (7/12/11) (the "Order"), raising the dollar amount thresholds in Rule 205-3 under the Investment Advisers Act of 1940 (the "Advisers Act") for purposes of the rule’s exemption under the Advisers Act permitting the payment of performance fees to registered investment advisers by "qualified clients."

In February 2011 the Internal Revenue Service announced a second voluntary disclosure initiative to allow taxpayers with undisclosed offshore bank, securities and other financial accounts to comply with US income tax and other offshore account reporting rules for prior years and avoid criminal penalties with reduced civil penalties.  In addition to other persons, these rules apply to citizens and U.S. resident aliens (e.g., U.S. resident aliens that have maintained accounts in their home country).

Introduction

On June 22, 2011, the Securities and Exchange Commission (the "SEC") adopted rules, rule amendments and amendments to Form ADV (the "New Rules") under the Investment Advisers Act of 1940 (the "Advisers Act") to implement Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").

The New Rules were not adopted without some controversy. Two of the five SEC Commissioners voted against adopting new rules and amendments to register hedge fund and private fund advisers, and to impose reporting requirements on funds exempt from registration, arguing that the regulatory burdens of the new reporting requirements on venture capital advisers who are exempt from registration are too heavy, are contrary to congressional intent and would negatively impact capital formation. The SEC Commissioners unanimously voted to adopt rules to implement registration exemptions for venture capital fund advisers, advisers to private funds with less than $100 million in assets under management ("AUM") in the United States, and certain foreign advisers. The SEC Commissioners also unanimously voted to adopt a new rule defining "family offices" that are exempt from registration under the Advisers Act.

In a recent decision under the Open Meetings Act (“OMA”), the Michigan Court of Appeals held that a public body’s minutes did not adequately reflect the decision made at a meeting, thus violating the OMA.

In Citizens for Public Accountability v. Lawrence, Case No. 292311 (May 26, 2011), the township was in litigation with a developer. They reached a settlement, but before the township approved it, several public meetings were held for the purpose of considering it. The township held a special meeting on July 24, 2008 during which it approved the settlement agreement by adopting a resolution. Subsequently, at another meeting, they approved the minutes of the July 24 meeting and also approved the resolution.

OVERVIEW

The United States Supreme Court rarely issues a decision regarding public contracting.  When it does, this is a noteworthy event.  Such an instance occurred when it handed down an opinion in General Dynamics Corp. v. United States, No. 09-1298 (U.S., May 23, 2011). 

Last week, the DOL unveiled a "time-keeping smart phone app" for employees to keep their own time records via an application on their iPhones or iPod Touches. The App is free and can be downloaded from iTunes. While the App's concept seems simple and convenient, it may actually cause considerable confusion.

Last week, the DOL unveiled a "time-keeping smart phone app" for employees to keep their own time records via an application on their iPhones or iPod Touches. The App is free and can be downloaded from iTunes. While the App's concept seems simple and convenient, it may actually cause considerable confusion.

The disruptions to the automotive supply chain caused by the cataclysmic events in Japan are likely to continue for some time and become increasingly severe. Even suppliers that are not directly or immediately affected likely will experience some disruptions to their supply chains as the difficulties encountered by many tier 2 and tier 3 suppliers continue to ripple upward. As OEM plants reduce their production schedules to contend with parts shortages, purchasing forecasts could be sharply reduced and, in some instances, even suspended, causing ripples back downstream. Buyers and sellers, OEMs and suppliers, with and without a physical presence in Japan, with direct supply relationships or multi-tiered relationships with Japan are absorbing the shocks. Prudent suppliers will proactively review their contractual rights and obligations at the earliest opportunity, before situations become critical.

Certain documents relating to voting can be retrieved under Michigan’s Freedom of Information Act (“FOIA”). On March 9, 2010, the Michigan Court of Appeals ruled in Practical Political Consulting, Inc v Land 287 Mich. App. 434; 789 N.W.2d 178 (2010), that the government should turn over certain information regarding voters in Michigan’s 2008 Presidential Primary election.

Recent Media Law rulings analyzed by the Butzel Long Media Team.

On Friday, March 25, 2011, the Equal Employment Opportunity Commission published its final regulations and accompanying interpretive guidance to implement the ADA Amendments Act of 2008 ("ADAAA"). The final regulations will take effect on May 24, 2011.

On Friday, March 25, 2011, the Equal Employment Opportunity Commission published its final regulations and accompanying interpretive guidance to implement the ADA Amendments Act of 2008 ("ADAAA"). The final regulations will take effect on May 24, 2011.

The disruptions to the automotive supply chain caused by the cataclysmic events in Japan are likely to continue for some time and become increasingly severe. Even suppliers that are not directly or immediately affected likely will experience some disruptions to their supply chains as the difficulties encountered by many tier 2 and tier 3 suppliers continue to ripple upward. As OEM plants reduce their production schedules to contend with parts shortages, purchasing forecasts could be sharply reduced and, in some instances, even suspended, causing ripples back downstream. Buyers and sellers, OEMs and suppliers, with and without a physical presence in Japan, with direct supply relationships or multi-tiered relationships with Japan are absorbing the shocks. Prudent suppliers will proactively review their contractual rights and obligations at the earliest opportunity, before situations become critical.

Earlier this week, the United States Supreme Court yet again made it easier for employees to bring retaliation lawsuits against their employers. By a 6-2 decision (Justice Kagan did not participate), the Court held that oral complaints implicating the Fair Labor Standards Act ("FLSA") are covered by the Act's anti-retaliation protections.

When the Michigan Medical Marihuana Act ("MMMA") became law in 2008, Michigan employers were left wondering how the Act would affect their ability to maintain a drug-free workplace. Specifically, would the MMMA prevent an employer from disciplining or discharging an employee who violated company policy by testing positive for marijuana if the employee had a medical marijuana registry card? After two years of uncertainty, Michigan employers have finally received some much needed guidance.

When the Michigan Medical Marihuana Act ("MMMA") became law in 2008, Michigan employers were left wondering how the Act would affect their ability to maintain a drug-free workplace. Specifically, would the MMMA prevent an employer from disciplining or discharging an employee who violated company policy by testing positive for marijuana if the employee had a medical marijuana registry card? After two years of uncertainty, Michigan employers have finally received some much needed guidance.

One of the many bills that was passed in Michigan at the end of the year was the Property Assessed Clean Energy Act. ; This legislation allows local units of government to establish a Property Assessed Clean Energy Program. Under the Program, the local unit of government could enter into a contract with the property owner to finance energy efficiency improvements or renewable energy systems. "Energy efficiency improvements" is defined as equipment, devices, or material intended to decrease energy consumption, including, but not limited to, all of the following:

In the United States, corporations and their executives increasingly are being prosecuted and punished for criminal activity. On November 1, 2010, recent amendments to the United States Sentencing Guidelines went into effect that impact the severity of punishment in white-collar cases involving corporations and their executives. These amendments will increase or reduce the severity of a corporation's recommended sentence depending upon, among other things, the strength and effectiveness of its compliance program. The stronger and more effective the program, the less severe the recommended sentence will be. Conversely, a weak compliance program – or the lack of one – will result in a harsher recommended sentence. With the start of a new year, corporations should create or strengthen existing compliance programs now, so as to help reduce the severity of the recommended punishment under the Sentencing Guidelines, and more importantly, to increase the likelihood of avoiding a charge in the first place.

For years, the Michigan Payment of Wages and Fringe Benefits Act lagged behind the technologies available for how to pay employees. Specifically, unlike various other states' payment of wages statutes, the Michigan Act did not permit Michigan employers to require employees to receive their pay by direct deposit. Instead, an employee's consent to direct deposit had to be voluntary, and if an employee did not consent to direct deposit, then the employer had to issue a paper check to the employee.

Effective December 21, 2010, however, the Act was amended to permit, subject to certain conditions, the mandatory use of either direct deposit or a payroll debit card, which is also known as a payroll card or a paycard. This amendment means that an employee cannot insist on payment by the means of a paper check and that an employer can compel the use of direct deposit or payroll debit cards and can accordingly transition into a paperless payroll system with associated savings.

In the United States, corporations and their executives increasingly are being prosecuted and punished for criminal activity. On November 1, 2010, recent amendments to the United States Sentencing Guidelines went into effect that impact the severity of punishment in white-collar cases involving corporations and their executives. These amendments will increase or reduce the severity of a corporation's recommended sentence depending upon, among other things, the strength and effectiveness of its compliance program. The stronger and more effective the program, the less severe the recommended sentence will be. Conversely, a weak compliance program – or the lack of one – will result in a harsher recommended sentence. With the start of a new year, corporations should create or strengthen existing compliance programs now, so as to help reduce the severity of the recommended punishment under the Sentencing Guidelines, and more importantly, to increase the likelihood of avoiding a charge in the first place.